Rautaruukki, Wartsila and SKF to merge longs business

Rautaruukki, Wartsila and SKF to merge longs business

Finnish steel producer Rautaruukki Oyj, Finnish company Wartsila Oyj and Swedish firm AB SKF signed a memorandum of understanding to merge their long products businesses into a jointly owned company called NewCo. NewCo's operations will cover Wartsila's subsidiary Imatra Steel, SFK's subsidiary Ovako Steel and Rautaruukki's long products subsidiaries Fundia Special Bar, Fundia Wire and Fundia Bar & Wire Processing. Rautaruukki, Wartsila and AB SKF will own 47%, 26.5% and 26.5% of NewCo, respectively. Rautaruukki's rebar business will not be included in the transaction. The final agreement regarding NewCo is expected to be signed by June 30, 2005.